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There are 3 key points to making any media player/FM modulator set up work:
1, MP3 player connected correctly to FM transmitter, usually through headphone jack or dock connection to transmitter.
2, Find an empty radio frequency (87.9 gets me from Detroit to Atlanta with one interruption in mountains in Tenesee but I can't get to Lansing without changing, go figure!) on your stereo
3, Set the FM transmitter to broadcast on that radio station you identifed as blank.
You should be all set, hit play on your mp3 player and the player should play to the transmitter which will broadcast to the blank station and come out of your speakers.
No. Cassette adapters are the best devices to play your mp3 in the car. You don't hear about them much because the industry seems to be trying to push FM transmitters down everybody's throat.
There should be an adapter plug on your stereo for it, a lot of times it's on the back of the head unit.. it's always on the front, you plug the two together and download it to the head unit.